The current State and Federal rebates & incentives make solar a compelling investment:
- Electricity savings make solar cheaper than buying from the utility company
- Income from SRECS help you make money
- State and Federal Incentives lower the payback period
- Increase your property value
In the state of Massachusetts, there are significant tax rebates and incentives available for both residential and commercial applications. The financial analysis of a solar system is dependent upon many factors. Contact us today (508-280-0987) for a site assessment and financial analysis.
Summary of Incentives/Policies for Renewable Electric Systems
The Massachusetts Technology Collaborative
The Renewable Energy Trust division of the Massachusetts Technology Collaborative oversees rebate awards through its Commonwealth Solar Initiative. Rebate awards for residential PV projects are between $1 & $5.50/watt of installed solar capacity. Maximum residential PV project sizes eligible for rebates are 5kW.
Federal Residential Solar Tax Credit
On October 3, 2008, the U.S. House and Senate passed historic legislation including renewable energy provisions such as an eight year extension of the 30% solar tax credit and removal of the monetary cap for residential solar electric installations. The bill also allows a residential energy tax credit for 30% of small wind energy systems.
Solar Renewable Energy Credits (SREC)*
Renewable Energy Credits comprise the value of the emissions-free component of renewable energy. RECs have become a desirable commodity and are bought and sold regularly. Solar RECs offer additional revenue from your solar PV System, thereby increasing the rate of return on your investment.
Massachusetts Property Tax Incentives
Residential solar electric systems are exempt from sales and property taxes.
Massachusetts Renewable Energy Income Tax Credit
Massachusetts allows a 15% credit -- up to $1,000 -- against the state income tax for the cost of a renewable-energy system (including installation costs) installed on an individual’s primary residence. If the credit amount is greater than a resident's income tax liability, the excess credit amount may be carried forward to the next succeeding year for up to three years. Eligible technologies include solar water and space heating, photovoltaics (PV), and wind-energy systems.
Important Solar News:
JAN 1, 2010--
Beginning in January 2010, new Massachusetts state rebate programs-- Commonwealth Solar II and Commonwealth Solar Stimulus will take effect to help finance the installation of residential and commercial solar projects. The newly proposed rebate levels are introduced to specifically compliment the emerging Solar Credit Market that will be critical in establishing predictable market support for the solar industry in Massachusetts. For more information about the Solar Credit Market see: www.mass.gov/doer.
OCT 3, 2008--The U.S. House and Senate passed historic renewable incentive legislation. Renewable energy provisions in H.R.1424 include an eight year extension of the 30% solar tax credit and removal of the monetary cap for residential solar electric installations. The bill also allows a residential energy tax credit for 30% of small wind energy systems.